Manhattan Bridge Capital (NasdaqCM:LOAN) - Share price, News & Analysis

Q: What is the Fair Price of LOAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

LOAN ($5.49) is trading below our estimate of [[fair value]] ($11.51)

LOAN fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	5/6
Financial Health	4/6
Dividends	2/6

LOAN Stock Overview

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States.

Rewards

Trading at 52.3% below our estimate of its fair value

Earnings are forecast to grow 17.65% per year

Earnings grew by 17.8% over the past year

Risk Analysis

Dividend of 9.11% is not well covered by earnings or forecast to be in the next 3 years

Has a high level of debt

Does not have a meaningful market cap ($63M)

Manhattan Bridge Capital Competitors

ACRES Commercial Realty

NYSE:ACR

US$81.1m

Seven Hills Realty Trust

NasdaqCM:SEVN

US$154.4m

Lument Finance Trust

NYSE:LFT

US$133.7m

Great Ajax

NYSE:AJX

US$231.0m

Price History & Performance

Summary of all time highs, changes and price drops for Manhattan Bridge Capital
Historical stock prices
Current Share Price	US$5.49
52 Week High	US$7.10
52 Week Low	US$5.10
Beta	0.52
1 Month Change	0.37%
3 Month Change	3.98%
1 Year Change	-10.73%
3 Year Change	-10.88%
5 Year Change	-5.35%
Change since IPO	-9.44%

Recent News & Updates

Jul 28

Manhattan Bridge Capital declares $0.125 dividend

Manhattan Bridge Capital (NASDAQ:LOAN) declares $0.125/share quarterly dividend, in line with previous. Forward yield 8.9% Payable Oct. 17; for shareholders of record Oct. 11; ex-div Oct. 10. See LOAN Dividend Scorecard, Yield Chart, & Dividend Growth.

Jul 22

Manhattan Bridge Capital GAAP EPS of $0.12 in-line, revenue of $2.12M

Manhattan Bridge Capital press release (NASDAQ:LOAN): Q2 GAAP EPS of $0.12 in-line. Revenue of $2.12M (+24.0% Y/Y).

Shareholder Returns

	LOAN	US Mortgage REITs	US Market
7D	-1.6%	1.9%	1.3%
1Y	-10.7%	-18.3%	-11.7%

Return vs Industry: LOAN exceeded the US Mortgage REITs industry which returned -18.3% over the past year.

Return vs Market: LOAN matched the US Market which returned -11.7% over the past year.

Price Volatility

Is LOAN's price volatile compared to industry and market?
LOAN volatility
LOAN Average Weekly Movement	4.6%
Mortgage REITs Industry Average Movement	5.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.2%

Stable Share Price: LOAN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LOAN's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1989	6	Assaf Ran	https://www.manhattanbridgecapital.com

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. It offers short-term, secured, and non-banking loans to real estate investors to fund their acquisition, renovation, rehabilitation, or enhancement of properties in the New York metropolitan area, including New Jersey and Connecticut, and in Florida. The company’s loans are primarily secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.

Manhattan Bridge Capital Fundamentals Summary

How do Manhattan Bridge Capital's earnings and revenue compare to its market cap?
LOAN fundamental statistics
Market Cap	US$63.11m
Earnings (TTM)	US$5.04m
Revenue (TTM)	US$6.48m

12.5x

P/E Ratio

9.7x

P/S Ratio

Is LOAN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LOAN income statement (TTM)
Revenue	US$6.48m
Cost of Revenue	US$0
Gross Profit	US$6.48m
Other Expenses	US$1.44m
Earnings	US$5.04m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.44
Gross Margin	100.00%
Net Profit Margin	77.81%
Debt/Equity Ratio	57.7%

How did LOAN perform over the long term?

See historical performance and comparison

Dividends

9.1%

Current Dividend Yield

114%

Payout Ratio

Does LOAN pay a reliable dividends?

See LOAN dividend history and benchmarks

When do you need to buy LOAN by to receive an upcoming dividend?
Manhattan Bridge Capital dividend dates
Ex Dividend Date	Oct 07 2022
Dividend Pay Date	Oct 17 2022
Days until Ex dividend	55 days
Days until Dividend pay date	65 days

Does LOAN pay a reliable dividends?

See LOAN dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is LOAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LOAN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LOAN. This is calculated by dividing LOAN's market cap by their current preferred multiple.
What is LOAN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$63.11m

LOAN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does LOAN's PE Ratio compare to its peers?

LOAN PE Ratio vs Peers

The above table shows the PE ratio for LOAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	6.3x
ACR ACRES Commercial Realty	n/a	155.8%	US$81.1m
SEVN Seven Hills Realty Trust	4x	-13.0%	US$154.4m
LFT Lument Finance Trust	17.6x	49.8%	US$133.7m
AJX Great Ajax	21.1x	60.0%	US$231.0m
LOAN Manhattan Bridge Capital	12.5x	17.6%	US$63.1m

Price-To-Earnings vs Peers: LOAN is expensive based on its Price-To-Earnings Ratio (12.5x) compared to the peer average (6.3x).

Price to Earnings Ratio vs Industry

How does LOAN's PE Ratio compare vs other companies in the US Mortgage REITs Industry?

Price-To-Earnings vs Industry: LOAN is expensive based on its Price-To-Earnings Ratio (12.5x) compared to the US Mortgage REITs industry average (12.5x)

Price to Earnings Ratio vs Fair Ratio

What is LOAN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LOAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.5x
Fair PE Ratio	11.3x

Price-To-Earnings vs Fair Ratio: LOAN is expensive based on its Price-To-Earnings Ratio (12.5x) compared to the estimated Fair Price-To-Earnings Ratio (11.3x).

Share Price vs Fair Value

What is the Fair Price of LOAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LOAN ($5.49) is trading below our estimate of fair value ($11.51)

Significantly Below Fair Value: LOAN is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Manhattan Bridge Capital forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOAN's forecast earnings growth (17.6% per year) is above the savings rate (1.9%).

Earnings vs Market: LOAN's earnings (17.6% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: LOAN's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if LOAN's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if LOAN's revenue is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if LOAN's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Manhattan Bridge Capital performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LOAN has high quality earnings.

Growing Profit Margin: LOAN's current net profit margins (77.8%) are higher than last year (75.3%).

Past Earnings Growth Analysis

Earnings Trend: LOAN's earnings have grown by 6.2% per year over the past 5 years.

Accelerating Growth: LOAN's earnings growth over the past year (17.8%) exceeds its 5-year average (6.2% per year).

Earnings vs Industry: LOAN earnings growth over the past year (17.8%) exceeded the Mortgage REITs industry -1.6%.

Return on Equity

High ROE: LOAN's Return on Equity (11.6%) is considered low.

Discover strong past performing companies

Financial Health

How is Manhattan Bridge Capital's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LOAN's short term assets ($70.5M) exceed its short term liabilities ($2.3M).

Long Term Liabilities: LOAN's short term assets ($70.5M) exceed its long term liabilities ($25.3M).

Debt to Equity History and Analysis

Debt Level: LOAN's net debt to equity ratio (57.4%) is considered high.

Reducing Debt: LOAN's debt to equity ratio has reduced from 80.7% to 57.7% over the past 5 years.

Debt Coverage: LOAN's debt is well covered by operating cash flow (21.7%).

Interest Coverage: Insufficient data to determine if LOAN's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is Manhattan Bridge Capital current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

9.11%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: LOAN's dividend (9.11%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: LOAN's dividend (9.11%) is in the top 25% of dividend payers in the US market (4%)

Stability and Growth of Payments

Stable Dividend: LOAN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LOAN's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (113.7%), LOAN's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (106.1%), LOAN's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

11.2yrs

Average management tenure

CEO

Assaf Ran (56 yo)

33.58yrs

Tenure

US$280,973

Compensation

Mr. Assaf Ran founded Manhattan Bridge Capital, Inc. (formerly Dag Media Inc.) in 1989 and has been its Chairman, Chief Executive Officer and President since 1989. Mr. Ran has been the Chief Executive Offi...

CEO Compensation Analysis

Compensation vs Market: Assaf's total compensation ($USD280.97K) is below average for companies of similar size in the US market ($USD763.69K).

Compensation vs Earnings: Assaf's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: LOAN's management team is seasoned and experienced (11.2 years average tenure).

Board Members

Experienced Board: LOAN's board of directors are seasoned and experienced ( 22.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: LOAN insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31